Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Regional Revitalization
• Digital Transformation (DX)

Environmental Achievements

• Reduced greenhouse gas emissions by 1,877 kilograms through the use of 2,623 kilograms of recycled materials in office renovation.
• Achieved paperless operations in the Tokyo headquarters, minimizing waste.
• Utilized environmentally friendly products in the workspace.
• Promoting cashless transactions to reduce CO2 emissions associated with cash handling.
• Developed IPaC (ITFOR Package Cloud), a next-generation cloud service with minimal environmental impact based on AWS.

Social Achievements

• Launched a Comeback Alumni Program to re-employ former employees.
• Implemented various personnel system reforms, including a qualification and grading system and a performance evaluation system.
• Improved employee retention rate by emphasizing the value of initiatives.
• Redesigned office space to create a comfortable and collaborative work environment.
• Implemented initiatives to improve work-life balance, resulting in over 80% paid vacation utilization.
• Support program for paternity leave providing full salary for up to two weeks.

Governance Achievements

• Established a Sustainability Committee chaired by the president, with three directors serving as vice-chairpersons.
• Established three promotion committees: Regional Revitalization, Human Resources, and Environmental.
• Appointed independent outside experts to one-third of the Board of Directors.
• Implemented Japan’s Corporate Governance Code principles.
• Established a Compliance and Risk Management Committee to oversee compliance and risk management.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact, particularly mitigating climate change.
• Addressing urban-rural disparities and promoting regional economic revitalization.
• Tackling society’s rapid digital transition and boosting business productivity through digitization.
• Ensuring a healthy and safe workplace that respects human rights and diverse values.
• Strengthening corporate governance structures, including compliance and risk management.
• Business disruption from power outages and telecommunications failures caused by disasters.
• Costs and damages due to quality-related issues.
• Increased costs due to exchange rate fluctuations.
• Supply chain disruptions.
• Loss of critical information.
• Price declines amid intense competition.

Mitigation Strategies

• Strengthening greenhouse gas emissions regulations in line with international frameworks.
• Implementing business continuity planning (BCP) measures.
• Offering solutions for financial institutions, retailers, and public education boards to support regional revitalization.
• Promoting cashless transactions.
• Providing business process outsourcing (BPO) services to local governments.
• Collaborating with local systems engineering companies to meet cybersecurity needs.
• Establishing a business continuity plan (BCP) that accounts for large-scale earthquakes.
• Implementing safety measures, including a safety confirmation system, seismic resistance measures, and disaster prevention training.
• Obtaining ISO 9001 and ISO 27001 certifications.
• Strengthening information management with CAT Supporter.
• Engaging in forward exchange reserve transactions.
• Promoting work-style reforms, including telecommuting.
• Exercising procurement based on customer demands to minimize transportation, inventory, and waste generation.
• Leveraging business experience to specialize in systems for regional financial institutions and distribution/retail industries.
• Offering comprehensive services encompassing tangible and intangible elements, unique solutions, and network infrastructure.

Supply Chain Management

Responsible Procurement

• Procurement based on customer demands to minimize transportation, inventory, and waste generation.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, etc.)

Transition Risks

• Policy and regulatory risks
• Market risks

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001 (2015 edition), ISO 27001 (2013 edition), Privacy Mark

UN Sustainable Development Goals

• Various SDGs

ITFOR's initiatives aim to achieve the UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• IPaC (ITFOR Package Cloud)
• Digital Safe end-of-life service

Environmental Metrics

ESG Focus Areas

• Regional Revitalization
• Sustainability
• Human Resources Development

Environmental Achievements

• Not disclosed

Social Achievements

• Sponsored the FY2023 National Selection Coding Competition for Elementary School Students
• Held a junior high school student work experience program
• Continuous wage rise
• Enhanced office environment
• Introduction of a stock-based compensation program

Governance Achievements

• Establishment and enhancement of the Sustainability Promotion Committee
• Introduction of ROIC management
• Target dividend payout ratio of 50%
• Maintain total return ratio of at least 70%

Climate Goals & Targets

Environmental Challenges

• Stagnation of regional economies
• Recruiting difficulties
• Accelerating migration from on-premise to cloud
• Rapid evolution of technology, led by AI
• Growing expectations from capital markets
• Cost structure reform trends in the department store industry
• Reform of department store styles, shift toward new businesses
• Shrinking scale of department store market
• Increased procurement costs caused by weakening yen due to large number of products from overseas
• Increased procurement costs caused by weakening yen and increased geopolitical risks
• Soaring labor costs and intensifying competition in the mid-career recruitment market
• Shift of major customers developing in-house systems
• Market contraction due to consolidation of regional financial institutions
• On-time completion of system standardization for all local governments

Mitigation Strategies

• Expanding existing products horizontally
• Rolling out new solutions in existing areas
• Developing new products
• Strengthening of development personnel and reorganizing development methods
• Active investment in human resources
• Flexible and continuous organizational restructuring
• Renewal of HR system
• Digitalization of internal procedures
• Strengthening sales capabilities, cultivating human resources in operations departments, and enhancing operational efficiency through optimized staffing
• Collaborative strategies with external core vendors and regional SIers
• Shifting to cloud-based systems and developing accompanying proprietary services
• Increasing sales activities with a focus on regional hub cities
• Shifting to providing BPO services that ensure quality while reducing labor costs by leveraging ICT
• Establishing the ITFOR・BeX Becks subsidiary specializing in BPO
• Accelerate DX with the aim of improving operational efficiency and creating new value
• Strengthening alliances with business tie-ups and open innovation
• Developing highly value-added packaged systems and services that improve the quality and productivity of business operations
• Developing new services combined with existing services within the company
• Researching and examining new business models and approaches for EC
• Proposing “marketable EC” by making department store EC easier to use and more enhanced
• Developing businesses by partnering with IT companies that have highly unique solutions
• Actively collecting information on startups and incorporating them into our business, while also examining the feasibility of investing in M&As and capital and business alliances

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Agent Hub (SaaS-type service)
• SATURN (multi-service terminal)
• Cashless systems for vending machines
• Web-based telephone notification system

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Regional Revitalization
• Environmental Impact Reduction
• Human Capital
• Digital Transformation
• Strengthening Management Base

Environmental Achievements

• Reduced environmental impact (details not quantified in provided text)

Social Achievements

• Societal contributions through regional revitalization
• Human capital valued (details not quantified in provided text)

Governance Achievements

• Strengthening of management base (details not quantified in provided text)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC)'s International Integrated Reporting Framework

Environmental Metrics

ESG Focus Areas

• Regional Revitalization
• Human Capital Development
• Corporate Value Improvement
• Sustainability

Social Achievements

• Launched initiatives to improve work-life balance and reduce employee turnover.
• Implemented programs to enhance employee skills and career development.
• Expanded employee referral system.
• Increased opportunities for employee side jobs to broaden horizons.

Governance Achievements

• Established Sustainability Committee and subcommittees.
• Improved shareholder engagement through briefings and investor interviews.
• Implemented ROIC management to improve corporate value.

Climate Goals & Targets

Environmental Challenges

• Declining birthrate and aging population impacting consumer spending and labor shortage.
• Lagging DX and cashless operations in Japan.
• Inefficient cross-selling due to divisional focus.
• Regional economic disparities.
• Limited employee rotation between departments.
• Difficulty retaining potential retirees.

Mitigation Strategies

• Aggressive business strategies to achieve vision.
• Focus on streamlining business operations, developing non-face-to-face applications and cashless payment systems.
• Overhaul of mindset in business units to improve cross-selling.
• Creating a workplace environment allowing employees to work from various locations.
• Implementing a system enabling employee transfers to desired positions.
• Adopting an internal recruitment process for all employees, including those seeking retirement options.
• Allowing employees to take one additional day off per week for side jobs.

Supply Chain Management

Climate-Related Risks & Opportunities